+ RMA Rural Municipalities
of Alberta

Resolution 7-13S

Property Tax Recovery Related to Land

April 4, 2013
Expiry Date:
June 15, 2018
Active Status:
Municipality of Crowsnest Pass
Municipal Governance and Finances
Vote Results:

WHEREAS Part 10, Division 8 provides  municipalities with the authority to collect tax arrears that relate to property taxes, local improvement taxes or special taxes as detailed under Section 382 of the Municipal Government Act (MGA); and

WHEREAS Alberta municipalities rely on property tax revenue to financially support the purposes of a municipality as defined in Part 1 Section 3 (a) (b) and (c) of the MGA; and

WHEREAS there are municipalities, towns and villages that are experiencing property tax arrears; and

WHEREAS the length of time required to enforce the tax recovery provisions of Part 10, Division 8 place excessive strain on the cash flows of municipalities, towns and villages; 

Operative Clause:

THEREFORE BE IT RESOLVED THAT the Alberta Association of Municipal Districts and Counties recommend to the Government of Alberta to amend Section 412(1)(a) of the Municipal Government Act (MGA) to exclude “for more than one year” thereby enabling municipalities to initiate the tax recovery process one year after the date the tax is imposed rather than of two years as legislation now provides.

Member Background:

Over the last several years, property tax arrears due to the Municipality of Crowsnest Pass have been cumulating with the Director of Finance confirming that there is $867,226.91 of property tax arrears due to the Municipality at December 31, 2011.  The tax recovery process, as it exists, enables property owners to continue to maintain taxes in arrears for a continuous two year period after the date imposed before the property can be added to the tax arrears list.   The current tax recovery process is a three year collection process that does not provide municipalities with a timely opportunity to recover uncollectible tax arrears thereby impacting cash flow required for operations and meeting tax requisitions on behalf of the Government of Alberta. 

RMA Background:

The AAMDC has no active resolutions directly related to this issue.

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